Unique Insurance poised to sustain strong growth
Unique Insurance Co Ltd (UIC) recorded GH¢9.2 million in income revenue in 2015 as against GHC6.3 million recorded in 2014.
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According to the Managing Director, Mr. Victor Obeng-Adiyiah, the company also grew by 46 per cent last year which is unprecedented in the history of the company.
He said UIC was poised to make the brand a household name, sustain and improve its sterling performance despite the difficult economic conditions that confronted it and other businesses last year.
UIC is owned by the Ghana Mine Workers Union, Jislah Financial Holdings, TUC, the Ghana National Association of Teachers and other cooperative organisations.
Record growth
Speaking to newsmen in Accra, Mr Obeng-Adiyiah said the company had also chalked up a feat last year when it ended the year without any outstanding claims, which he described as a very magnificent achievement. This performance, he attributed to strategic measures put in place by the board, management and staff.
“We have three key areas that we focus on in our new phase. They are our open door policy by management, excellent customer service and prompt payment of genuine claims. In the area of open door policy, we’re talking about all inclusive management where there is no boss, no subordinate. We are all one. A rare teamwork,” he said.
The industry growth rate has been averagely 18 per cent over the last 6 years. The company has set an ambitious target to encourage additional growth in the coming years by winning more businesses from brokers and customers which will increase our market share by two per cent.” Mr. Obeng-Adiyiah said.
Challenges
He cited premium undercutting as one of the major challenges confronting the industry adding that the practice was having a negative impact on the growth of the industry.
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He explained Premium undercutting as the practice where an insurance company secretly offers clients unrealistically low premiums in order to gain a competitive advantage.
It must be emphasised that the practice is unethical as the National Insurance Commission (NIC) and Commissioner do not take kindly to that. The motive of engagement is usually to increase the business portfolio, but this invariably depletes the insurer’s reserves, making it difficult for them to honour claims sometimes.
He said the phenomenon must be nipped in the bud before it consumes the industry. We thank the National insurance commissioner for putting in place strict measures to punish companies that indulge in that.
Outlook
Mr. Obeng-Adiyiah said the outlook for UIC and the industry as a whole was very bright and described the recent increment in insurance premium as very positive for the industry.
He said the penetration of the market by insurance companies would perhaps deepen with the enforcement of fire insurance Act 724 section 184 (1) that says “every commercial building shall be insured with an insurer against the hazards of collapse, fire, earthquake, storm and flood, and an insurance policy issued for it.”